Facebook, Twitter and Google are facing the threat of new taxes to help fund a crackdown on a tide of fake news and misinformation which is poisoning British democracy, according to MPs.

A damning report from the Digital Culture Media and Sport Select Committee proposed that Facebook and other social media firms should pay a levy to cover the costs of Britain’s data privacy watchdog, the Information Commissioner’s Office (ICO).

Damian Collins MP, Chair of the Committee, called for urgent action to tackle the threat posed by fake news including the possibility of social media being liable for the content posted online, possibly opening them up to lawsuits from members of the general public who…